Thinking about what happens later in life and after your die is, let’s face it, something many of us don’t want to think about. However, planning for the future while you are able to, is simply a wise idea, and whilst it may make some readers a little uncomfortable, let’s explore this very important area of the law.

It is estimated that 70% of adults haven’t made a Will and are therefore leaving what will happen after they die to chance. Whilst making a Will is commonly seen as something to do in later life, if you have assets or life insurance for your own estate then all adults should absolutely make a Will regardless of age. .

If you die without a Will, this is known as ‘intestacy’ and the Law (namely the Administration of Estates Act (Northern Ireland) 1955) dictates ‘who gets what’ and how your Estate would be divided.

Essentially, under the Intestacy rules, the highest existing and surviving relative will take priority. If there is no surviving next of kin, the whole of the Estate will go to the Crown, a situation known as ‘bono vacantia.’

Spouses/Partners
A common misconception is that you don’t need to make a Will if you are married as your surviving spouse will inherit everything. If you are married (or in a Civil Partnership) and die without having made a Will, depending on the value of your estate, your surviving spouse may not automatically receive everything.

If you are not married, you should keep in mind that a partner (even if you are engaged or living together) has no automatic entitlement to anything from your estate under the Intestacy Rules and may have to apply through the Courts to get anything, with no guarantee of success.

Children
If you have children, your main concerns could be who will look after them and what assets will be available to provide for their welfare if you die.  A Will is an opportunity to appoint a guardian(s) if anything happened to you and the child’s parent. . You can also allocate money or other assets by way of a Trust for the benefit of your children. Inheritance Tax may arise whether you have a Will or not, but a Will offers an opportunity to consider legitimate tax planning measures to mitigate any potential liability.

Property
Whether you are a first-time buyer, own multiple properties or are downsizing, property is often one of the biggest assets you will own, so it’s important to consider who you would like to inherit it after your death. Your Will can set out to whom your property would pass. Without a Will, your home could pass to beneficiaries under the Rules of Intestacy; this means that your loved ones might miss out on the inheritance you would like them to have.

For example, if you own property as ‘tenants in common’ then your share of the property does not automatically pass to the co-owner on your death. If the rules of intestacy apply, then a cohabiting partner will not inherit anything. If you want to ensure that your share passes to them, then you must make a Will.

If you are unmarried and buying property with a partner, when you are for example providing different deposits, you should both discuss your intentions with your Solicitor who can draft the necessary documentation to outline what should happen regarding distribution of proceeds if the property is sold and give you both the certainty you deserve.

Care
People often worry about the possibility of needing care in the future and the potential impact of associated costs on your finances and your children’s inheritance. You may need to think about how property and any other savings or investments can be protected if you were no longer able to care for yourself. Asset Protection options can be considered such as outright gifts, gifts into Trust and planning by Will. It is important to discuss these with your Solicitor to determine what is most appropriate based on your circumstances and vital to take advice early as the rules on deprivation of assets may apply.

You should carefully consider the impact of your financial affairs throughout your life and into retirement, keeping your Will under periodic review.

We always say, if you’re able to make decisions about your future wishes now, then the time to do so is now. Don’t put off doing today something that you might regret tomorrow. Life is for living but protecting your loved ones after you’re gone, just makes sense.

Please contact Conor Wylie or Leah Deehan to arrange a consultation